Intermin gets started at Teal

PERTH (miningweekly.com) – The board of junior Intermin Resources has approved the Stage 1 development of the Teal gold mine, in Western Australia.

The development of the Teal project comes after a positive feasibility study earlier this year, which considered the development of Stage 1 oxide and transitional material. Some 171 500 t, grading 3.2 g/t gold will be mined over the nine-month mine life, with production expected to reach 15 567 oz.

Intermin said on Tuesday that project partner RM Contracting would fund half of the A$3.9-million development cost of the mine in order to share in 25% of the free cash flow, after Intermin recovered its asset discovery cost of A$2.15-million.

“Bringing Teal Stage 1 into production is a major milestone for the company and comes at a time of reduced operating costs and a strong Australian dollar gold price to deliver significant cash flow to the business this financial year,” said Intermin MD Jon Price.

“We are now fully focused on safe, efficient mining operations at Teal, generating a continuous pipeline of projects beyond Teal and accelerating exploration on the major shear zones to grow our resource position and continue our search for the next big discovery.”